Your Clients & Their Bank Accounts

The Federal Reserve’s Survey of Consumer Finances is out. All of the information on your bank balance, and the bank balances of your customers is from 2022. That it’s four years old is a concern. However, we doubt the numbers have changed all that much in that four year period.

The survey broke ages into these categories, under 35, 35-44, 45-54, 55-64, 65-74 and 75 and older:

• The median bank account balances for those under 35 is $5,400

• That figure for people 65 to 74 is $13,400

• College-educated households have higher bank balances

• Couples save more money than singles

When you combined all the money from everyone in the country, the average bank balance hits $8,000. This amount, unlike the other figures, includes checking, savings, money market, and brokerage cash accounts, as well as prepaid debit cards.

Here are the median bank balances by age — again, using balances from checking, savings, money market and brokerage cash accounts and prepaid debit cards:

• Under 35 — $5,400

• 35-44 — $7,500

• 45-54 — $8,700

• 55-64 — $8,800

• 65-74 — $13,400

• Over 75 — $10,000

Bank balances were also looked at by family status. The categories are single with a child or children, under age 55 and single with no child or children, over 55 with no child or children, couples with a child or children and couples with no children.

Single adults over 55 had the highest bank balances for individuals. Couples without children had the highest balances of all. Again, the balances are made up of checking, savings, money market and brokerage cash accounts and prepaid debit cards:

• Single with children — $2,400

• Single, no child under age 55 — $4,000

• Single, no child over 55 — $4,300

• Couple with children — $12,500

• Couple with no children — $16,000

Education levels were also considered. The study shows a financial worth difference between college educated people and others. These individuals, couples or families had higher bank balances on average than any others.

A high school graduate traditionally has three times the amount of savings than someone without a high school diploma. College grads had four times the median balance of someone with some college education but without a degree.

These are the four categories used in this section. No high school diploma, a high school diploma, some college or a college degree. All statistics are from balances in checking, savings, money market and brokerage cash accounts and prepaid debit cards.

• No high school diploma — $900

• High school diploma — $3,030

• Some college — $5,200

• College degree — $23,370

Source link: Investopedia — https://bit.ly/3Vwmhe8